Germany has the largest national economy in Europe, the fourth largest by nominal GDP in the

world and the fifth largest GDP per capita based on purchasing power parity (PPP), and is a
founding member of both the European Union and the Eurozone. Germany has a social market
economy that combines social policies favoring social insurance with capitalism.
Germany is rich in many natural resources and it was the first major industrialized nation to
engage in the renewable energy agreement- Energiewende, and it has become the leading
producer of wind turbines in the world.
Another interesting fact about the German economic environment is that almost 100 percent of
all German companies are considered small and medium-sized enterprises and are mostly familyowned.
German`s economy has been resilient in the face of the global economic uncertainty and it exited
the recession (because of the swift economic reforms) almost as quickly as it entered it. They
achieved recovery thanks to an ambitious economic plan by the end of 2009. Growth continued
through 2012 at a rate higher than other nations. By 2014, Germany recorded the highest trade
surplus in the world, exceeding USA and China.
Today, Germany's economy is largely made up of a service sector (around 70% of the total
GDP), a robust industry (29.1% of GDP), and a small but notable agricultural sector (0.9% of
GDP). The nation's national output derives from exports (41%): including vehicles, machinery,
electronic products, electrical equipment, etc.
Economic Forecast
Germany had a solid year for growth in 2014, driven largely by private consumption. The
economy has experienced a few bumps in the road in 2015, but overall it appears to still be on
steady footing. Consumer confidence reached a 13-year high in May, and the German
government allocated 13.5 billion for infrastructure improvements and investment through
2018. Low international oil prices and a strong labor market with higher wages argue well for
domestic consumption, while exports will likely increase on the back of a weak euro.